Nomura Real Estate Plans to Raise $1.8 Billion Through REIT IPO

May 9 (Bloomberg) -- Nomura Real Estate Holdings Inc., a
property affiliate of Japan’s biggest brokerage, plans to raise
about 175 billion yen ($1.8 billion) in an initial public
offering that is poised to be the country’s biggest this year.

The developer plans to sell 1.75 million shares in its real
estate investment trust in Tokyo on June 12, according to a
document filed with the country’s finance ministry. The REIT
will consist of 227.6 billion yen worth of warehouses and
commercial properties mainly in the Tokyo metropolitan area, the
filing showed.

The offering follows Nippon Prologis REIT Inc.’s 100.3
billion yen-IPO in February and GLP J-REIT’s $1.3 billion in a
share sale in December, according to data compiled by Bloomberg.
The final price will be set on June 3, according to the document.

The Tokyo Stock Exchange REIT Index has gained 37 percent
this year, amid expectations that the government will accelerate
efforts to end deflation and boost economic growth. The index
had the biggest annual increase, of 34 percent, in 2012.